Orange County’s largest employment agencies reported no growth in 2019, reflecting an industry that has stalled in the past three years, and is set for an uncertain future as unemployment rates ratchet up.
Total annual revenue for the 19 ranked firms decreased about 1% to $837 million, according to this week’s Business Journal list. A year ago, the agencies’ revenue was flat and in 2017, they reported a combined 3% growth.
Staffing agencies said they placed 28,616 workers last year, an 11% decline from 2018. They boosted the number of permanent workers by 52% to 762.
Staffing agencies are often seen as a bellwether of the job market as companies tap their services to fill posts ranging from administrative to industrial before making permanent hires.
The agencies say their customers are shifting resources to automation, which reduces their need for more employees. Other factors included wage inflation for blue-collar workers, causing companies to convert more of their temporary workforce to full time.
The Business Journal trimmed this year’s list to those reporting more than $15 million in OC billings for 2019, causing the list to shrink to 19 from 30 in 2018.
COVID-19 Fallout
This list doesn’t reflect the coronavirus impact, which began taking its toll in mid-March.
Orange County’s administrative and support services, which includes temporary firms, fell 2,400 jobs in March, according to the state’s Employment Development Department.
It was the second biggest sector decline in March, following professional and business services with a loss of 5,500 jobs.
The EDD said the March figure doesn’t include the second half of the month, when substantially more job losses hit the area market.
Few Gainers
Companywide revenue for the firms totaled $46.9 billion, down 0.2% year-over-year.
Of the 19 ranked agencies, only seven reported an increase, three saw revenue decline, one remained flat and the remaining eight were Business Journal estimates.
Here are some notable findings from the list:
• Select Staffing, based in Atlanta, remained at No. 1 despite reporting a 1.9% drop to $96.6 million. Its revenue also fell 14% in 2018.
Temporary workers placed by its local office declined 20% to 7,765 workers. Companywide revenue was $3.1 billion, flat from the previous year.
• Hanover, Md.-based Aerotek Inc. retained the No. 2 spot for the second straight year with $94.5 million in OC revenue. It has about 75 employees in Orange County.
• No. 4 Roth Staffing Cos. in Orange reported $71.3 million in revenue, down about 21%.
• The list saw the debut of Pacific Companies Inc., which reported a 20% climbed in OC revenue to $18.1 million.
• Kimco Staffing Services Inc. of Irvine reported revenue fell 29% to $33.9 million, the biggest decline on this year’s list.
• The biggest increase was 43% to $18.8 million from Newport Beach’s StaffRehab, which concentrates on placing psychologists, school nurses and other specialists either in direct hires or travel jobs in school districts or healthcare facilities. It has a staff of 25.
